Choose Site

Press Release

Morgan Lewis Advises Redwood Trust in Structuring of Market’s First Non-Agency RMBS Backed by Blockchain

September 24, 2021

WASHINGTON, DC, September 24, 2021: Morgan Lewis is advising Redwood Trust, a specialty finance company focused on several distinct areas of housing credit, in the structuring of a securitization incorporating blockchain technology, a first in the non-agency residential mortgage-backed securitization (RMBS) market.

Expanding on Redwood’s relationship with Liquid Mortgage, a patented digital asset and data platform, Redwood engaged the company to act as distributed ledger agent for the transaction. In this role, Liquid Mortgage will leverage its blockchain-based technology to provide end users with more timely reporting of loan level payments of principal and interest on the underlying residential mortgages. The securitization, SEMT 2021-6, had an initial notional balance of $449 million and is backed by 497 jumbo residential loans. 

The Morgan Lewis team advising Redwood includes partners Asa (Geordie) Herald, Charlie Sweet, Julie Stapel, and Sarah Nelson, of counsel Tom Plank, senior counsel Barbara Klippert, and associates Ashley Templeton, Alex Yi, Dan Jung, Ellie Scialabba, and Ester Lee.

For more, read the company’s announcement.